What do you think, who is behind the "Unstoppable Sustainable Economic Growth of China"? Is it for President Xi Jinping or his new era of socialist economic thought?
Ref: Article Leadership of Xi Jinping behind Unstoppable Sustainable Econ...
Let's know your valued opinions.
China's growth is neither unstoppable, nor sustainable, and Xi Jinping's role should not be exaggerated either. Re the latter, I think Xi Jinping took over when high economic growth rates were coming down. I think China's remarkable growth has been supported by an extraordinary large domestic market where the only barriers are distance, and perhaps language. This has allowed two economic principles to be especially powerful: economies of scale, and specialisation (division of labour). And those have given support to low prices for exported goods and services. The 'socialist' part has played a role tool. First in suppressing growth by too much reliance on central 'planning'. There seems to be no denying that there is a cultural aspect that can be conflated with socialism: the inclination in the Asian culture towards more collectivism, discipline, and more. China's break-neck growth really started under another 'Ping': Deng Xiaoping, and he reduced 'socialism' in the sense of reducing government interference with and direction of economic activity.
I fully agree with the arguments put forward by Jaap van der Straaten. I would add a very skillful policy management with respect to FDIs and the protection and promotion of national champions (which is very effective thanks to size) in a number of domains. Also, it should not be forgotten that the chinese workforce is relatively skilled, favouring technology transfer first and development after; simultaneously, the huge rural population willing to migrate to cities favoured the growth of the construction sector and maintaining wages low. High private savings rates also contributed to maintain prices under control and the trade balance largely active for a prolonged period. The "early capitalism" mode, with scarce respect of laws and a general opacity in its administration might have helped to some extent but might also become a burden. In the long run, many of the elements which propelled this furious development will vanish, the chinese population will become older and... by that time China might look like other advanced economies.
Asian mode of production, but which is relevant only to some of Asian countries. Also certain psychological type.
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